NCERT Class 11 Chapter 7 Business Studies Formation of a Company MCQ

NCERT Class 11 Chapter 7 Business Studies Formation of a Company MCQ | Questions & Answers: Here is a wonderful opportunity for students who wish to enhance their knowledge in Class 11 Chapter 7 Business Studies Formation of a Company topic. In this article, we have provided a series of multiple-choice questions that will help you guys in knowing where you stand with regard to your knowledge.

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1. Minimum number of members to form a public company is

A. 5

B. 7

C. 12

D. 21

2. The application for registration of a company should be presented to the _______________ of the state appointed under Companies Act 1956

A. Controller

B. Registration officer

C. Governor

D. Registrar

3. “Men may come and men may go but the company exist”- this explains which characteristics of the company as per companies Act 1956

A. Separate legal entity

B. Perpetual Succession

C. Capacity to sue

D. None of the above

4. A prospectus is issued by

A. A private company

B. A public company seeking investment from public

C. A public enterprise

D. A public company

5. Application for approval of name of a company is to be made to

A. SEBI

B. Registrar of Companies

C. Government of India

D. Government of the State in which Company is to be registered

6. A company is known as the _______company of another company if it has control over that other company.

A. Subsidiary

B. Holding

C. Controlling

D. Statutory

7. Stages in the formation of a public company are in the following order

A. Promotion, Commencement of Business, Incorporation, Capital Subscription

B. Incorporation, Capital Subscription. Commencement of Business, Promotion

C. Promotion, Incorporation, Capital Subscription, Commencement of Business

D. Capital Subscription, Promotion, Incorporation, Commencement of Business

8. When the registered office of a company is changed within a city then it has to be intimated to the registrar within ________ days of such change

A. 60

B. 45

C. 30

9. Par value of shares means the __________ value of the shares

A. ctual

B. face

C. Market

D. dividend

10. A Government Company means any company in which not less than 51% of the paid-up share capital is held by

A. Central Government

B. State government

C. Both a & b

D. Neither a nor b

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11. The certificate of capital will be issued by

A. Registrar of Companies Act

B. Controller of companies Act

C. Registrar of capital issues

D. Controller of capital issues

12. _________ capital means the sum mentioned in the capital clause of Memorandum of Association

A. Full capital

B. Maximum capital

C. share capital

D. Nominal Capital

13. Powers, rights, remuneration, qualification and duties of directors are discussed clearly in

A. Memorandum of Association

B. Articles of Association

C. Prospectus

D. None of the above

14. Preliminary Contracts are

A. binding on the Company

B. binding on the Company, if ratified after incorporation

C. binding on the Company, after incorporation

D. not binding on the Company

15. For example Par value is Rs10 and it is issued at Rs15 then Rs5 is the ___________ amount

A. Profit

B. Market value

C. dividend

D. premium

16. Statement in lieu of prospectus can be filed by

A. Public company

B. Private company

C. Unregistered company

D. None of the above

17. The articles of association need to be signed by

A. l proposed directors

B. Registrar

C. Subscribers of memorandum

D. None of the above

18. A private company means a company which has a minimum paid up capital of Rs.———

A. 100,000

B. 500,000

C. 5,000,000

D. none of the above

19. Which of the following clause of Memorandum of Association cannot be altered

A. Name

B. Object

C. Situation

D. Liability

20. The liability of the members of the company can be limited by

A. Share

B. Guarantee

C. Both a & b

D. Neither a nor b

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21. Preliminary Contracts are

A. binding on the Company

B. binding on the Company, if ratified after incorporation

C. binding on the Company, after incorporation

D. not binding on the Company

22. The application for registration of a company should be presented to the _______________ of the state appointed under Companies Act 1956

A. Controller

B. Registrar

C. Governor

D. Registration officer

23. _______________ capital means the sum mentioned in the capital clause of Memorandum of Association

A. Full capital

B. Maximum capital

C. share capital

D. Nominal Capital